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 PROJECT REPORT ON

EXPORT PROCEDURE & DOCUMENTATION

PREPARED BY

SHRUTI GANGRADE

UNDER THE GUIDANCE OF

MR.VIVEK SHARMA

ORGANIZATION

PRATIBHA SYNTEX LTD.

PITHAMPUR (M.P.) INDIA

PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD OF

MASTER OF BUSINESS ADMINISTRATION

TRAINING DURATION

(12/01/2012 TO 30/01/2012)
 ACKNOWLEDGEMENT

It is the matter of great pleasure and privilege to be able to present this project
report on EXPORT PROCEDURE AND DOCUMENTATION.

I also take this opportunity to express my deep regards and gratitude to Mr.
Vivek Sharma (Manager- Commercial & Logistics) and would like to thank
the department of marketing & logistics for giving me this opportunity.

Also, special thanks to Mr. Vivek sharma (manager – commercial & logistics),
ms. Ankita saxena (buisness development manager) they has
beenmyguidethroughouttheinternshipperiod. Shemonitoredmy progress weekly,
shared herknowledgeandalwaysencouragedme to go to
anextraedgetowardsfulfilling my duties

I acknowledge my indebtness to various authors for making use of valuable

information liberally .

Further , I express sincere thankfulness to Dr.Minal Uprety( Faculty mentor )

for advice and support during summer internship , Also I express my sincere to
Dr.Yogeshwari Pathak, Director ( Prestige institute of management and
research, indore), for wonderful opportunity.

Sincerely,
RITIKA CHOUHAN
Company certificate
 PREFACE

I express my sincere gratitude to the management of Pratibha Syntex Limited, for

providing me material to prepare my project on their esteem organization.

I would like to thank Medicaps Institute of Technology & management (IIFTR), Indore
for encouraging me to undertake this project.

I am very thankful towards MS. Sujata Bundela ma’am for their consideration & also
grateful towards Mr. Murlidhara Panicker , Mr. Sanjay Jain, Mr. Rajesh Kumar Singh &
other member of staff for clearing away my doubts.

I could complete my project successfully with the valuable cooperation of company’s

personal.

SINCERELY

………………………

SHRUTI GANGRADE
Table of content
List of tables and charts
Introduction
India’s textiles sector is one of the oldest industries in Indian economy dating
back several centuries. India's overall textile exports during FY 2017-18 stood at
US$ 39.2 billion in FY18 and is expected to increase to US$ 82.00 billion by
2021 from US$ 31.65 billion in FY19 (up to Jan 19).
The Indian textiles industry is extremely varied, with the hand-spun and hand-
woven textiles sectors at one end of the spectrum, while the capital intensive
sophisticated mills sector at the other end of the spectrum. The decentralised
power looms/ hosiery and knitting sector form the largest component of the
textiles sector. The close linkage of the textile industry to agriculture (for raw
materials such as cotton) and the ancient culture and traditions of the country in
terms of textiles make the Indian textiles sector unique in comparison to the
industries of other countries. The Indian textile industry has the capacity to
produce a wide variety of products suitable to different market segments, both
within India and across the world.
Market Size
The Indian textiles industry, currently estimated at around US$ 150 billion, is
expected to reach US$ 250 billion by 2019. India’s textiles industry contributed
seven per cent of the industry output (in value terms) of India in 2017-18.It
contributed two per cent to the GDP of India and employs more than 45 million
people in 2017-18.The sector contributed 15 per cent to the export earnings of
India in 2017-18.
The production of raw cotton in India is estimated to have reached 36.1 million
bales in FY19^.
Investment
The textiles sector has witnessed a spurt in investment during the last five years.
The industry (including dyed and printed) attracted Foreign Direct Investment
(FDI) worth US$ 3.12 billion during April 2000 to March 2018.
Some of the major investments in the Indian textiles industry are as follows:

 In May 2018, textiles sector recorded investments worth Rs 27,000 crore

(US$ 4.19 billion) since June 2017.
 The Government of India announced a Special Package to boost exports
by US$ 31 billion, create one crore job opportunities and attract
investments worth Rs 800.00 billion (US$ 11.93 billion) during 2018-
2020. As of August 2018, it generated additional investments worth Rs
253.45 billion (US$ 3.78 billion) and exports worth Rs 57.28 billion (US$
854.42 million).

Government Initiatives
The Indian government has come up with a number of export promotion policies
for the textiles sector. It has also allowed 100 per cent FDI in the Indian textiles
sector under the automatic route.
Initiatives taken by Government of India are:
  The Directorate General of Foreign Trade (DGFT) has revised rates for
incentives under the Merchandise Exports from India Scheme (MEIS) for
two subsectors of Textiles Industry - Readymade garments and Made ups -
from 2 per cent to 4 per cent.
 As of August 2018, the Government of India has increased the basic
custom duty to 20 per cent from 10 per cent on 501 textile products, to
boost Make in India and indigenous production.
 The Government of India announced a Special Package to boost exports
by US$ 31 billion, create one crore job opportunity and attract investments
worth Rs 80,000 crore (US$ 11.93 billion) during 2018-2020. As of
August 2018 it generated additional investments worth Rs 25,345 crore
(US$ 3.78 billion) and exports worth Rs 57.28 billion (US$ 854.42
million).
 The Government of India has taken several measures including Amended
Technology Up-gradation Fund Scheme (A-TUFS), scheme is estimated
to create employment for 35 lakh people and enable investments worth Rs
95,000 crore (US$ 14.17 billion) by 2022.
 Integrated Wool Development Programme (IWDP) approved by
Government of India to provide support to the wool sector starting from
wool rearer to end consumer which aims to enhance the quality and
increase the production during 2017-18 and 2019-20.
 The Cabinet Committee on Economic Affairs (CCEA), Government of
India has approved a new skill development scheme named 'Scheme for
Capacity Building in Textile Sector (SCBTS)' with an outlay of Rs 1,300
crore (US$ 202.9 million) from 2017-18 to 2019-20.

Achievements
Following are the achievements of the government in the past four years:

 I-ATUFS, a web-based claims monitoring and tracking mechanism was

launched on April 21, 2016.
 381 new block level clusters were sanctioned.
 20 new textile parks were sanctioned
 Employment increased to 8.62 million in FY18 from 8.03 in FY15.
INTRODUCTION OF COMPANY

Figure 1 PRATIBHA SYNTEX LIMITED

Pratibha syntax limited is a vertically-integrated textile company involved in
cotton farming, spinning, knitting, dyeing and garment manufacturing, having an
annual sales turnover of 982.62crore. Pratibha Syntex Limited is a three star
export house and has 2 operational plants. It launched its operations in the year
1997. Pratibha connects 35,000 farmers, 10,000 employees and apparel brands
from over 20 countries.

With almost 3 decades of experience under our belt, we, at Pratibha, produce over
60 million pieces of garments annually including inner wear, thermals and
sleepwear, and thus cater to the taste of more than 20 international leading
garment brands across the globe. Apart from manufacturing cotton, fibers, fabrics
and apparel, Pratibha Syntex is also engaged in social initiatives to generate
employment for rural women.

TAGLINE
More than responsible textile.

VISION

To be the global leader in sustainable textile products and practices

MISSION

Provide the world with sustainable high quality goods through clean technologies,
continuous innovations and ecological designs that have minimum impact on the
environment and the society

PRODUCT RANGE

PRODUCT
RANGE

YARN GARMENT

Cotton underwear

Sportswear

Leisurewear

high street fashion wear

loungewear for
women men, kids and infants.

Ladies Tank Top

Women Top

Women Skirt

Organic cotton

Fair Trade cotton

BMP cotton
recycled cotton

viscose, modal

lyocell

polyester

recycled polyester and their blends.

MAJOR CLIENTS OF PRATIBHA SYNTEX LIMITED
PRATIBHA INITIATIVES

Pratibha has an ordeal to positively affect the world through their way of doing
work. They adopted a comprehensive strategy of choosing social, natural, quality,
and business objectives and its qualities profoundly inserted in its way of life. The
firm have had changed its slogan from ‘making cooperative energy in materials’
to ‘capable materials'. Pratibha's vision is to be the world's best provider of natural
cotton articles of clothing and to effectively energize the development of the
worldwide natural ways that they are doing via-

VASUDHA - natural cultivating venture offering all phases of generation for

natural filaments: from homestead, to yarns, to textures, to completed articles of
clothing.

 Project overview
Founded by Pratibha in 1999 with 5000 acres, the Vasudha project aims at
expanding organic cotton farming culture in India and leads the path of
sustainable change through the SEED initiative. Today, Vasudha has 30000
farmers across 475 villages in four states of India Fairtrade, Better Cotton
Initiative (BCI) and transitional cultivation.
 Moving forward
Currently farms are in Madhya Pradesh, Maharashtra, Orissa, and Rajasthan.
Further expansion is expected-
 Expand farming to cover 2, 00,000 acres and 50,000 farmers.
 Establish 10 model farms and research centres.
  Create own seed production; establish 4 community and support
centres.
 Farmer training
Vasudha is maintained and supported by technical supervisors and
agronomists who closely work with the farmers to improve farming practices
in order to increased outputs. A tremendous change in the quality of farmer’s
lives is the verification to the success of the initiative.
 SEED
Socially inclusive, economically empowering, environmentally driven
development- Pratibha Syntex has sustainably built its business practices.
Following the concept of organic practices, SEED was formed; it embraces all
further sustainable pursuits implemented in the factory and at the farms.
 Transparency
Vasudha employs a staff of 120 administrators in order to support and educate the
farmers in organic farming practices. Every step of production is recorded and
documented, starting from raw material to finished garment to ensure integrity
and substantiate claims.

TOTAL GREEN STEPS

 WATER
Almost 95 percent of water at Pratibha runs in a cycle. Water cleaning is done in
the organization’own efficient treatment plant, large enough to treat water for the
population of 11,000 people. Other practices carried out by the organization-
 Rainwater harvesting
 All dyes GOTS certified
 Salt free dyeing method
 Continuous dyeing machine.

 ENERGY
Pratibha invested a large amount of capital in energy efficient strategies and
technologies. They even operate a captive power plant that is powered by 6MW
of natural gas earning carbon credit. It includes-
 Captive power plant fitted with hot water generator to provide hot
water for dyeing process.
 Fuel gas and waste heat recaptured for steam generation.
 Zero discharge facility certified by state authority.

 GREEN GARMENT FACILITY

 Start-up of progressive green garment facility in SEZ.
 Rainwater harvesting
 Low energy air cooling
 High productivity
 Balanced working conditions aimed to empower the physical,
emotional and & mental well-being.
 Energy efficient sewing machines.

 EDUCATION
Pratibha and Chaudhary family foundation have been supporting 90 schools that
are under the care of Friends of Tribal Society.

 COMMUNITY
Pratibha supports old age homes and orphanages in India and provides free
medical care, nutrition, housing and self-development opportunities. The
organisation also expends support to Welfare Association for Children with
special abilities.

 LOOP RECYCLING
Over the course of two years Pratibha Syntax has invested nearly 90 million USD
into sustainable initiatives including a modern waste recycling plant with the
capabilities of not only reducing self-generated textile waste but textile waste
produced by other manufacturers. Loop recycles 95 percent of spinning waste and
5 percent of garment cut waste.

EMPLOYEE WELLNESS
Maintaining a healthy work life balance is at the core of who we are. Pratibha
schedules daily yoga sessions for all company employees and provides food,
lodging and medical facilities and skill development course

2.4. ORGNIZATION STRUCTURE:

PRATIBHA SYNTEX LTD

Communicatio
Managing Director Partner
Marketing

Development
Merchandisin

General Manager

Factory Manager Export Manager Accounts Manager

 Merchandiser Manager (Raw In-house
materials & Quality control
fabric)

Production Manager Stores Finished Warehouse

Department In charge
Sampling in charge

 Pattern Master

 Cutting In
charge

 Time Officer

 Line Inspector

 Supervisors
(checking,
ironing,
packing)

 EXPORT PROCEDURE

DEPARTMENT DESCRIPTION

3. Departments & function:

• Yarn Department -Yarn (thread) is one of the most important raw-materials

for the garment manufacturing.is responsible for producing knitted fabric i.e.

fabric from yarn.

• Knitting Department– Knittingis responsible for producing knitted fabric

i.e. fabric from yarn.

• Washing and Dyeing Department - The department is responsible for two

different stages in garment manufacturing. For grey (not colored) fabric,

 department is responsible for coloration of fabric and for dyed (colored)

fabric, department is responsible for washing.

• Finishing Department -The department is responsible for finishing of the

fabric with a proper procedure so that it is ready for garment production.

Whether the fabric is dyed or washed, it follows the same process in the

finishing department.

• Cutting Department -The department is responsible for cutting of the fabric

into different parts of the garment. This department is mainly responsible for

cutting and avoiding wastage.

• Stitching Department -The department is responsible for stitching different

parts of garment together.

• Finishing and Packaging Department -This is final stage before the

garment is ready to be shipped. As the garment is already finished, it

requires a series of quality checks. The garment goes through the quality

checks like color test, washing test, stitching test etc. After which it is steam

pressed, labeled, packed into garment bags and finally, put into the cartons.

Once all cartons are packed and labeled, external quality check takes place

and goods are shipped.

• Merchandising Department - The department acts as a liaison between the

buyer and manufacturing division.

• Human Resources Department - Unlike company managers who oversee

the day-to-day work of employees, HR departments deal with employee

concerns such as benefits, pay, employee investments, pension plans, and

 training. Their work may also include settling conflicts between employees

or between employees and their managers.

• Finance and Accounting Department: - An accounting department

provides accounting services and financial support to the organization it

belongs to. The department records accounts payable and receivable,

inventory, payroll, fixed assets and all other financial elements.

• Production Planning and Control (PPC) Department -The department is

responsible for making plans for the entire organization i.e. all the

departments. PPC being in the Centre of all departments also controls their

functionality.

3.1.FLOW CHART
PROCEDURE

Pratibha syntax ltd is the Manufacturer Exporter and it directly exports yarn or
garments to its clients overseas.

1st step is the marketing team search for the potential buyers of its products and
send samples to them.

2. On receiving the requisition & purchase order from merchant after negotiations on
price, incoterms and payment mode. Proforma invoice in generated.

3. the production departments start the production as per the requirements of the
buyer

4.the marketing team intimates the logistic department about the consignment and
logistic team ask forwarder to book a container ad shipping space in vessel.

5. after the production is completed the the marketing team is intimated and the
finished product is sent for packaging in packing department as per client requirements.

6. logistics team does inspection of the container and on clearance stuffing is done.

7. Logistics team starts preparing pre shipment export documentation.

8.after container is stuffed it is sealed by rfid seals.

9. The container is send to the designated port along with all the necessary
documents.

10. after reaching the port the further process is handled by authorized C&f agent.

11. On the completion of the shipping procedure, the C&F agent submits the
documents to the post shipment department which does the further work of
realization of export proceeds etc.
Document prepareation

 Packing list is prepared which details the goods being shipped.

 GSP certificate is prepared if the consignment is exported to EU or

countries mentioned in the GSP list.

 Certificate of origin is also issued and attached, if required.

 Following documents are given to Customs for their reference:

 Custom Invoice

 Packing list

 IEC certificate

 Purchase Order or L/C, if required.

 Custom annexure

 On receipt of above documents, customs will issue clearance certificate.

 After custom clearance a set of documents with custom clearance receipt

are sent along with the consignment to the forwarder. Forwarder books the

shipment & as per the size of the cartons calculates CBM & decides which

container to be used.

 Following documents are sent to buying house for their reference, as per

buyer’s requirement:

 Invoice

 Packing List

 GSP (if exports to Europe)

  Certificate of Origin (if required)

 Wearing Apparel sheet

 A copy of FCR/ Airway Bill/ Bill of Lading

Buying house then intimates the buyer about the shipment & gives

the details regarding it. Buying house will send a set of these documents to

the buyer.

 Buyer collects the consignment from the destination port by showing the

following documents:

 Invoice

 Packing List

 Bill of lading/ FCR/ Airway Bill

 On shipment of goods, exporter will send the documents to the importer’s

bank.

3.3. POST-SHIPMENT PROCEDURE

 A foreign buyer will make the payment in two ways:

 TT ( telegraphic transfer) i.e. Wire Transfer – (Advance payment, as

per the clause – 50% advance & remaining 50% on shipment)

 Letter of Credit

 If the payment terms are a confirmed L/C then the payment will be made by

the foreign bank on receiving the following documents:

 Invoice

 Packing list

 B/L
  Any other required by the buyer or the country of import.

 The payment terms can be:

 At Sight

 Within 15 days from Bill of Lading or Airway Bill date.

 Within 30 days from Bill of Lading or Airway Bill date.

 Within 60 days from Bill of Lading or Airway Bill date.

 Within 90 days from Bill of Lading or Airway Bill date.

 After shipment, exporter sends the documents to the buyer’s bank for

payment. As the buyer’s bank receive the documents it will confirm with the

buyer for release of payment. On confirmation, it will make the payment in

the foreign currency. The transaction will be Bank to Bank.

 The domestic branch will credit the exporter’s account, as against the

respective purchase order or invoice, in Indian rupees by converting the

foreign currency as per the current bank rate.

 If the payment is through wire transfer, the payment will be made as per the

terms agreed by the exporter (Advance payment, as per the clause – 50%

advance & remaining 50% on shipment).

Logistics

Company does yearly contracts with multiple transporation companies as per the
regional stronghold of the transport companies. The main focus of thelogist
department is to deliver the goods with minimum time and minimum cost. From
last few years pratibha has focused on its logistics quit seriously and brought
down the time traportation time.

Transportation is used to bring and send container to port for internal movement
of goods from 1 factory to another

It is also used to deliver products to its domestic customer.

There are 5-7 major transportation companies pratibha works with.

Monthly payments are done to this companies as per the services availed.

Logistic departments also handles the pre shipment documentation part.

The team selects the transportation company, which has a strong hold in a specific
region to where goods needs to be sent. Booking is done for the vehicle.

After the vehicle is sent for the destination the teams keeps a track on the vehicle
and regukary checks about the location it reached.this is to ensure that the good
are delivered on time and without any damage.

The logistic team maintains a very coordination with the transportation companies
which helps the company to avoid any delays.

The work of logistics teams is to arrange the container and its transportation,
stuffing of container or lorry, booking of vessel through c&f agent,
E-Way Bill is the short form of Electronic Way Bill. It is a unique document/bill,
which is electronically generated for the specific consignment/movement of
goods from one place to another, either inter-state or intra-state and of value
more than INR 50,000, required under the current GST regime

Packing list-

Self sealing certificate

Shipping bill

Commercial invoice

gsp(rex)

vgm

gate pass

b/l

lc

fema declaration form/export value declaration

rfid seals 2 seals

trade card
Terms of Shipments – Inco terms

The INCOTERMS (International Commercial Terms) is a universally recognized

set of definition of international trade terms, such as FOB, CFR & CIF, developed

by the International Chamber of Commerce (ICC) in Paris, France.

The purpose of Inco terms is to provide a set of international rules for the

interpretation of the most commonly used trade terms in foreign trade.

Pratibha majorly uses fob and cif incoterms for its exports
References

www.pratibhasyntex.com

www.fibretofashion.com

www.howtoexportimport.com

www.ibef.org

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